{"id":49327,"date":"1996-07-08T00:00:00","date_gmt":"1996-07-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/director-general-est-anr-vs-t-abdul-razak-etc-on-8-july-1996"},"modified":"2015-11-24T16:57:03","modified_gmt":"2015-11-24T11:27:03","slug":"director-general-est-anr-vs-t-abdul-razak-etc-on-8-july-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/director-general-est-anr-vs-t-abdul-razak-etc-on-8-july-1996","title":{"rendered":"Director General, Est &amp; Anr vs T. Abdul Razak Etc on 8 July, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Director General, Est &amp; Anr vs T. Abdul Razak Etc on 8 July, 1996<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1996 SCC  (4) 708, \t  JT 1996 (6)\t502<\/div>\n<div class=\"doc_author\">Author: S Agrawal<\/div>\n<div class=\"doc_bench\">Bench: Agrawal, S.C. (J)<\/div>\n<pre>           PETITIONER:\nDIRECTOR GENERAL, EST &amp; ANR.\n\n\tVs.\n\nRESPONDENT:\nT. ABDUL RAZAK ETC.\n\nDATE OF JUDGMENT:\t08\/07\/1996\n\nBENCH:\nAGRAWAL, S.C. (J)\nBENCH:\nAGRAWAL, S.C. (J)\nNANAVATI G.T. (J)\n\nCITATION:\n 1996 SCC  (4) 708\t  JT 1996 (6)\t502\n 1996 SCALE  (5)113\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t THE 8TH DAY OF JULY, 1996<br \/>\nPresent:\n<\/p>\n<p>\t  Hon&#8217;ble Mr. Justice S.C Agrawal<br \/>\n\t  Hon&#8217;ble Mr. Justice G.T. Nanavati<br \/>\nM. Chandrasekharan, Additional solicitor General, V.J.<br \/>\nFrancis, P.I. Jose, Adv. and Amlan Ghose, Advs. with him for<br \/>\nthe appellants.\n<\/p>\n<p>\t\t      J U D G M E N T<br \/>\nThe following Judgment of the Court was delivered:<br \/>\nDirector General, ESI &amp; Anr.\n<\/p>\n<p>V.\n<\/p>\n<p>T. Abdul Razak<br \/>\n\t   [ WITH CIVIL APPEAL NO. 3953 OF 1988,<br \/>\n\t   CIVIL APPEAL\t  NO. 1913  OF 1989  AND<br \/>\n\t   SPECIAL LEAVE PETITION (C)NO 13126-27<br \/>\n\t   OF\t1996   {C.C.  NO.   368\/1996  }]<br \/>\n\t\t      J U D G M E N T<br \/>\nS.C. AGRAWAL, J.\n<\/p>\n<p>CIVIL APPEALS NOS. 3952\/1988, 3953\/1988 AND 1913\/1989\n<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;\n<\/p>\n<p>      These  appeals directed  against the  judgment of\t the<br \/>\ncentral\t   Administrative    Tribunal,\t  Bangalore    Bench<br \/>\n(hereinafter referred  to as  &#8216;the Tribunal&#8217;)  dated January<br \/>\n29, 1988 raise a common question relating to the validity of<br \/>\nRule 16(2)  of\tthe  employees&#8217;\t State\tInsurance  (Central)<br \/>\nRules, 1950  (hereinafter referred  to as  &#8216;the Rules&#8217;)\t and<br \/>\nRegulations  12(2)   and  13(1)\t  of  the  Employees&#8217;  State<br \/>\nInsurance  Corporation\t(Staff\tand  Condition\tof  Service)<br \/>\nRegulations,  1959   (hereinafter  referred   to   as\t&#8216;the<br \/>\nregulations&#8217;)<br \/>\n     The Employees&#8217;  State Insurance  Corporation (for short<br \/>\n&#8216;the Corporation&#8217;)  is a  statutory corporation\t established<br \/>\nunder the  provisions  of  the\tEmployees&#8217;  State  Insurance<br \/>\nCorporation Act,  1948 (herein\tafter referred\tto  as\t&#8216;the<br \/>\nAct&#8217;). Under  Section 16  of the Act the Director General of<br \/>\nthe Employees&#8217;\tState Insurance\t Corporation (for short &#8216;the<br \/>\nDirector General&#8217;)  is the  Chief Executive  Officer of\t the<br \/>\nCorporation and is one of the Principal officers. Section 17<br \/>\nof the\tAct makes provisions with regard to staff other than<br \/>\nthe Principal  Officers. In sub-section (2) of Section 17 it<br \/>\nis provided that the Corporation shall, with the approval of<br \/>\nthe  Central  Government,  make\t regulations  regarding\t the<br \/>\nmethod\tof  recruitment,  pay  and  allowances,\t discipline,<br \/>\nsuperannuation benefits\t and other  conditions of service of<br \/>\nthe members  of its  staff. Section  94-A, wherein provision<br \/>\nhas been  made for  delegation of  powers, provides that the<br \/>\nCorporation, and  Subject   to the  regulations made  by the<br \/>\nCorporation in\tthis  behalf,  the  Standing  Committee\t may<br \/>\ndirect that all of any of the powers and functions which may<br \/>\nbe exercised  by the  Corporation or the Standing Committee,<br \/>\nas the\tcase may  be, may  in relation\tto such\t matters and<br \/>\nsubject to  such conditions, if any, as may be specified, by<br \/>\nalso exercisable  by any officer or authority subordinate to<br \/>\nthe Corporation\t sub-section (1)  of Section  95 of  the Act<br \/>\nempowers  the\tCentral\t Government   to  make\t rules\t not<br \/>\ninconsistent with  the Act  for the purpose of giving effect<br \/>\nto the\tprovisions thereof.  Under clause (d) of sub-section<br \/>\n(2) of\tSection 95 such rules may provide for the powers and<br \/>\nduties of the principal officers and the conditions of their<br \/>\nservice.  Sub-section\t(1)  of\t  Section  97  empowers\t the<br \/>\nCorporation to\tmake regulations   not inconsistent with the<br \/>\nAct and\t the rules made thereunder for the administration of<br \/>\nthe affairs  of the Corporation and for carrying into effect<br \/>\nthe provisions of the Act. Under clause (xxi) of sub-section<br \/>\n(2) of\tSection 97  such regulations  may  provide  for\t the<br \/>\nmethod\tof  recruitment,  pay  and  allowances,\t discipline,<br \/>\nsuperannuation benefits\t and other  conditions of service of<br \/>\nofficers and  servants of  the Corporation  other  than\t the<br \/>\nprincipal officer.\n<\/p>\n<p>     The Rules have been framed by the Central Government in<br \/>\nexercise of  the powers\t conferred by Section 95 of the Act.<br \/>\nRule 16\t relating to  the powers  and duties of the Director<br \/>\nGeneral is as under:-\n<\/p>\n<blockquote><p>     &#8220;Rule 16.\tPowers and duties of the<br \/>\n     Director General  .- (1) The powers<br \/>\n     and duties\t of the Director General<br \/>\n     shall be &#8211;<\/p><\/blockquote>\n<blockquote><p>\t  (1)  to   act\t as   the  Chief<br \/>\n     Executive\t  officer     of     the<br \/>\n     Corporation;\n<\/p><\/blockquote>\n<blockquote><p>\t  (ii) to co-ordinate, supervise<br \/>\n     and control  the work  of the other<br \/>\n     Principal Officers;\n<\/p><\/blockquote>\n<blockquote><p>\t  (iii) to  convene,  under  the<br \/>\n     orders of the Chairman, meetings of<br \/>\n     the   Corporation,\t  the\tStanding<br \/>\n     Committee and  the Medical\t Benefit<br \/>\n     Council in\t accordance with the Act<br \/>\n     and the  Rules and to implement the<br \/>\n     decisions reached at the meetings;\n<\/p><\/blockquote>\n<blockquote><p>\t  (iv) to  enter into  contracts<br \/>\n     on\t  behalf   of\tCorporation   in<br \/>\n     accordance\t with  the  Act\t or  the<br \/>\n     Rules    of     regulations    made<br \/>\n     thereunder,  or   the  General   or<br \/>\n     special\tinstruction    of    the<br \/>\n     Corporation   or\t the\tStanding<br \/>\n     Committee;\n<\/p><\/blockquote>\n<blockquote><p>\t  (v) to furnish all returns and<br \/>\n     documents required\t by the\t Act  or<br \/>\n     the Rules to the Central Government<br \/>\n     and to  correspond with the Central<br \/>\n     Government\t   and\t   the\t   State<br \/>\n     Governments   upon\t   all\t matters<br \/>\n     concerning the Corporation ;\n<\/p><\/blockquote>\n<blockquote><p>\t  (vi) to  undertake such  other<br \/>\n     duties and\t to exercise  such other<br \/>\n     powers as\tmay from time to time be<br \/>\n     entrusted or delegated to him.<br \/>\n     (2) The  Director General may, with<br \/>\n     the  approval   of\t  the\tStanding<br \/>\n     Committee, by  general  or\t special<br \/>\n     order, delegate  any of  his powers<br \/>\n     or duties\tunder the  Rules or  the<br \/>\n     Regulations or under any resolution<br \/>\n     of the  Corporation or the Standing<br \/>\n     Committee, as  the case  may be, to<br \/>\n     any person\t subordinate to him. The<br \/>\n     exercise or discharge of any of the<br \/>\n     powers or duties so delegated shall<br \/>\n     be subjected  to such restrictions,<br \/>\n     limitations and conditions, if any,<br \/>\n     as the  Director General  may, with<br \/>\n     the  approval   of\t  the\tStanding<br \/>\n     Committee impose.&#8221;<\/p><\/blockquote>\n<p>     The Regulations  have been\t made by  the Corporation in<br \/>\nexercise of  powers conferred  by sub-section (1) of Section<br \/>\n97 read with clause (xxi) of sub-section (2) and sub-section<br \/>\n(2-A) of  the said Section and sub-section (2) of Section 17<br \/>\nof the\tAct.  The  Regulations\tapply  to  every  whole-time<br \/>\nemployee  of   the  Corporation\t other\tthan  the  principal<br \/>\nofficers  appointed   under  Section  16  of  the  Act.\t The<br \/>\nRegulations  contain   provisions   regarding\tappointment,<br \/>\nprobation, termination\tof service,  pay,  leave,  provident<br \/>\nfund, age  of retirement  pensionary benefits,\tcontrol\t and<br \/>\ndiscipline suspension,\tpenalties etc,\tregulation 12  which<br \/>\nrelates to  disciplinary authorities provides as follows :-\n<\/p>\n<blockquote><p>     &#8220;Regulation    12.\t    Disciplinary<br \/>\n     Authorities-   (1)\t  The\tDirector<br \/>\n     General  may   impose  any\t of  the<br \/>\n     penalties specified  in  regulation<br \/>\n     11 on any employee.\n<\/p><\/blockquote>\n<blockquote><p>     (2)  Without   prejudice\tto   the<br \/>\n     provisions\t of  sub-regulation  (1)<br \/>\n     but subject  to the  provisions  of<br \/>\n     sub-regulation  (3)   any\tof   the<br \/>\n     penalties specified  in  regulation<br \/>\n     11 may  be imposed\t on any employee<br \/>\n     by the  appointing authority or the<br \/>\n     authority specified  in this behalf<br \/>\n     by a  general of  special order  of<br \/>\n     the Director General.\n<\/p><\/blockquote>\n<blockquote><p>     (3)    Notwithstanding\tanything<br \/>\n     contained in  this\t regulation,  no<br \/>\n     penalty specified\tin clause (v) to\n<\/p><\/blockquote>\n<blockquote><p>     (ix) regulation 11 shall be imposed<br \/>\n     by any authority subordinate to the<br \/>\n     appointing authority.\n<\/p><\/blockquote>\n<blockquote><p>     Explanation-  Where   an\texployee<br \/>\n     holding a\tpost of\t any  class,  is<br \/>\n     promoted, whether\ton probation  or<br \/>\n     temporarily to the post of the next<br \/>\n     higher class,  he shall  be  deemed<br \/>\n     for the  purpose of this regulation<br \/>\n     to hold the post of the such higher<br \/>\n     class.&#8221;<\/p><\/blockquote>\n<p>     Regulation 13  which makes\t provision for the authority<br \/>\nwho can institute disciplinary proceedings reads as under :-\n<\/p>\n<blockquote><p>     &#8220;Regulation   13.\t  Authority   to<br \/>\n     Institute\tProceedings-   (1)   The<br \/>\n     Director  General\t or  any   other<br \/>\n     authority\tempowered   by\thim   by<br \/>\n     General or special order may :\n<\/p><\/blockquote>\n<blockquote><p>     (a)     institute\t    disciplinary<br \/>\n     proceeding against any employee;\n<\/p><\/blockquote>\n<blockquote><p>     (b) direct a disciplinary authority<br \/>\n     to\t     institute\t    disciplinary<br \/>\n     proceeding against\t any employee on<br \/>\n     whom that disciplinary authority is<br \/>\n     competent\tto  impose  under  these<br \/>\n     regulation\t any  of  the  penalties<br \/>\n     specified in regulation 11,<br \/>\n     (2)   A\tdisciplinary   authority<br \/>\n     competent under  these  regulations<br \/>\n     to\t impose\t any  of  the  penalties<br \/>\n     specified in clauses (i) to (iv) of<br \/>\n     regulation\t  11\tmay    institute<br \/>\n     disciplinary  proceedings\t against<br \/>\n     any employee  for the imposition of<br \/>\n     any penalties  specified in clauses\n<\/p><\/blockquote>\n<blockquote><p>     (v)  to   (ix)  of\t  regulation  11<br \/>\n     notwithstanding\t  that\t    such<br \/>\n     disciplinary   authority\tis   not<br \/>\n     competent under  these  regulations<br \/>\n     to\t impose\t  any  of   the\t  latter<br \/>\n     penalties.&#8221;<\/p><\/blockquote>\n<p>     In view of the powers conferred under Regulation 12(2),<br \/>\nthe Director  General made  and order  dated May 10, 1974 in<br \/>\nthe following terms :-\n<\/p>\n<blockquote><p>     &#8220;OFFICE ORDER NO 181 OF 1974<br \/>\n     In exercise of the powers conferred<br \/>\n     by\t Regulation  No.  12(2)\t of  the<br \/>\n     Employees&#8217;\t    State      Insurance<br \/>\n     Corporation (Staff\t and  Conditions<br \/>\n     of Service)  Regulations 1959,  the<br \/>\n     Director General  hereby  delegates<br \/>\n     powers to the Officers specified in<br \/>\n     Schedule-I\t   to\t impose\t   minor<br \/>\n     penalties specified  in clauses (1)<br \/>\n     to (iv) of Regulation 11 in respect<br \/>\n     of employees specified in Schedule-<br \/>\n     II on  condition  that  the  powers<br \/>\n     shall be  exercisable in respect of<br \/>\n     the employees  in their  respective<br \/>\n     regions\/offices.\n<\/p><\/blockquote>\n<blockquote><p>\t  This office  order  supersedes<br \/>\n     all previous  order on  the subject<br \/>\n     without  prejudice\t to  any  action<br \/>\n     taken or  proceedings initiated  in<br \/>\n     exercise of the powers conferred by<br \/>\n     the said or orders.\n<\/p><\/blockquote>\n<blockquote><p>\t       SCHEDULE-I\n<\/p><\/blockquote>\n<blockquote><p>     1. Regional Directors.\n<\/p><\/blockquote>\n<blockquote><p>     2. Director (Medical), Delhi.<\/p><\/blockquote>\n<blockquote><p>     3.\t    Administrative\tOfficer,<br \/>\n     establishment    Branch\tII    at<br \/>\n     Headquarters Officer.\n<\/p><\/blockquote>\n<blockquote><p>\t     SCHEDULE &#8211; II\n<\/p><\/blockquote>\n<blockquote><p>     1. Head Clerks, Assistants\/Managers<br \/>\n     Grade-III, Personal Assistants.\n<\/p><\/blockquote>\n<blockquote><p>     2.\t   Insurance\tInspectors\/Audit<br \/>\n     Inspectors\/Manager Grade &#8211; II&#8221;<\/p><\/blockquote>\n<p>     The said  order was  modified by  order dated  April 9,<br \/>\n1981 which reads as under:-<\/p>\n<p>\n\t     &#8220;Office Order<br \/>\n     In exercise  of the power conferred<br \/>\n     by\t Regulation  No.  12(2)\t of  the<br \/>\n     Employees&#8217;\t    State      Insurance<br \/>\n     Corporation (Staff\t and  Conditions<br \/>\n     of Service)  Regulations, 1959, the<br \/>\n     undersigned hereby delegates powers<br \/>\n     to\t  Regional    Directors\/Director<br \/>\n     (Medical)\t    Delhi\/Administrative<br \/>\n     Officer-II to  impose  any\t of  the<br \/>\n     penalties specified  in clauses (i)<br \/>\n     to (ix)  of Regulation  11 ibid  on<br \/>\n     class  III\t  (excluding   Insurance<br \/>\n     Inspectors\/Managers  Grade-II\/Audit<br \/>\n     Inspectors and Personal Assistants)<br \/>\n     and class\tIV employees,  in  their<br \/>\n     respective\t  regions\/offices.    In<br \/>\n     cases\t   of\t       Insurance<br \/>\n     Inspectors\/Managers  Grade-II\/Audit<br \/>\n     Inspectors and Personal Assistants,<br \/>\n     the powers already delegated by the<br \/>\n     Director General  vide office order<br \/>\n     No. 181  of 1974 dated 10.5.1974 to<br \/>\n     all  regional   Directors\/Directors<br \/>\n     (Medical)\t    Delhi\/Administrative<br \/>\n     Officer II\t  to  impose only  minor<br \/>\n     penalties as  specified in\t clauses<br \/>\n     (1) to  (iv) of  Regulation 11 ibid<br \/>\n     shall be  exercisable by  them. The<br \/>\n     powers delegated  by  the\tDirector<br \/>\n<span class=\"hidden_text\">     General vide  office order\t NO.  16<\/span><br \/>\n     (1)-2\/73\/-EI   will    thus   stand<br \/>\n     modified to the extent above.\n<\/p>\n<p>\t  It is circulated that Director<br \/>\n     General  will  continue  to  be  in<br \/>\n     disciplinary authority  in\t respect<br \/>\n     of\t Head  Clerks\/Assistants\/Manager<br \/>\n     Grade III, whose appointments above<br \/>\n     been   made    by\t him\/or\t   whose<br \/>\n     appointments have\tbeen made before<br \/>\n     1.12.1980 i.e.  prior to  the issue<br \/>\n     of this office Memorandum No. 7(3)-\n<\/p>\n<p>     1\/74 EI  (b)  dated  15.11.1980  to<br \/>\n     impose major panalties specified in<br \/>\n     clauses (v)  to (ix)  of regulation<br \/>\n     11 ibid.\n<\/p>\n<p>\t  This\t order\t  modified   all<br \/>\n     previous  orders\ton  the\t subject<br \/>\n     without  prejudice\t to  any  action<br \/>\n     taken or  proceeding  initiated  in<br \/>\n     exercise of the powers conferred by<br \/>\n     the said orders.&#8221;\n<\/p>\n<p>     The Standing  Committee had earlier passed a resolution<br \/>\ndated May 24, 1968 in the following terms:-\n<\/p>\n<blockquote><p>     &#8220;Resolved that  notwithstanding any<br \/>\n     restrictions imposed  earlier,  the<br \/>\n     Director General  may delegate  any<br \/>\n     of his  power under  the Rules,  or<br \/>\n     the  Regulations\tor   under   any<br \/>\n     resolution of  the Corporation  and<br \/>\n     the Standing Committee, as the case<br \/>\n     may be,  to any officer subordinate<br \/>\n     to\t   him,\t   subject    to    such<br \/>\n     restrictions,    limitations    and<br \/>\n     conditions, if any, as the Director<br \/>\n     General may  impose  from\ttime  to<br \/>\n     time.&#8221;<\/p><\/blockquote>\n<p>     T. Abdul  Razak (respondent  in Civil Appeals Nos. 3952<br \/>\nof 1988\t and 3953 of 1988) was employed as Insurance Manager<br \/>\nGr.  II\/Inspector   with   the\t corporation.\tDisciplinary<br \/>\nproceedings were  initiated  against  him  by  the  regional<br \/>\nDirector of  Karnataka Region  on the  basis  of  Memorandum<br \/>\ndated October  20,  1983.  In  the  said  proceedings  after<br \/>\nholding an  enquiry an\torder was  passed  by  the  Director<br \/>\nGeneral on  March 6,  1987 imposing the penalty of reduction<br \/>\nin rank\t to the\t post of  Head Clerk\/Manager  Gr.III  for  a<br \/>\nperiod of one year. The said respondent filed an application<br \/>\n(Application No. 473 of 1987 ) before the Tribunal assailing<br \/>\nthe  said   order,  disciplinary  proceedings  were  started<br \/>\nagainst the  said respondent  by the  Regional\tDirector  of<br \/>\nKarnataka Region  on the  basis of  another Memorandum dated<br \/>\nJanuary 23,  1985. A  writ petition  was field\tby the\tsaid<br \/>\nrespondent in  the Karnataka High Court challenging the said<br \/>\nmemorandum and\tthe competence\tof the\tRegional Director to<br \/>\ninitiate  the\tDisciplinary  proceedings.   The  said\twrit<br \/>\npetition was  subsequently transferred\tto the\tTribunal and<br \/>\nwas registered as Application No. 1678 of 1986.\n<\/p>\n<p>     P.K. Philip  (respondent in  Civil Appeal\tNO. 1913  of<br \/>\n1989)  was   employed  as   Manager  Gr.   II.\tDisciplinary<br \/>\nproceedings were  initiated  against  him  by  the  Regional<br \/>\nDirector on  the basis of Memorandum dated July 18\/25, 1986.<br \/>\nThe said  respondent filed  an application  (Application No.<br \/>\n747 of\t1987)  before  the  Tribunal  challenging  the\tvery<br \/>\ninitiation of  said proceedings\t against him by the Regional<br \/>\nDirector.\n<\/p>\n<p>     All the  three petitions,\tnamely, Application No. 1678<br \/>\nof 1986\t and application  No. 473  of 1987 filed by T. Abdul<br \/>\nRazak and  Application No  474 of  1987 filed by P.K. Philip<br \/>\nhave been  disposed of\tby  the\t Tribunal  by  the  impugned<br \/>\njudgment dated\tJanuary 29,  1988 whereby  the Tribunal\t has<br \/>\nStruck down  Rule 16(2)\t of the\t Rules in  its entirety, the<br \/>\nwords &#8220;or  the authority  specified  in\t this  behalf  by  a<br \/>\ngeneral\t or  special  order  of\t the  Director\tGeneral:  in<br \/>\nRegulation 12(2)  and the  words  &#8220;or  any  other  authority<br \/>\nempowered by  him  by  general\tor  special  order  may&#8221;  in<br \/>\nregulation 13(1)  of the  Regulation. The  resolution of the<br \/>\nStanding Committee  of the Corporation dated May 24, 1968 as<br \/>\nwell as\t orders dated  May 10, 1974 and April 9, 1981 passed<br \/>\nby the Director General have also been quashed. The Tribunal<br \/>\nhas also  quashed the  memorandum dated\t October  20,  1983,<br \/>\nJanuary 21,  1985 and  July 18\/25, 1986 regarding initiation<br \/>\nof disciplinary\t proceedings against both the respondents by<br \/>\nRegional Director  of Karnataka\t Region as well as the order<br \/>\nof punishment  dated March  6, 1987  passed by\tthe Director<br \/>\nGeneral against the respondent, T. Abdul Razak.\n<\/p>\n<p>     The Tribunal  has held that there was delegation of the<br \/>\npowers of the Corporation to the Director General and it was<br \/>\nnot permissible\t in law\t for the Director General to further<br \/>\nDelegate the  said powers to the said powers to the Regional<br \/>\nDirector. In taking the said view the Tribunal has proceeded<br \/>\non the\tbasis that  the powers\tof the corporation have been<br \/>\ndelegated to  the Director General under Section 97-A of the<br \/>\nAct and\t since Section\t94-A does  not\tmake  provision\t for<br \/>\nfurther delegation  by the  Director General of the Power so<br \/>\ndelegated the resolution of the Standing Committee dated May<br \/>\n24, 1968  as well  as Rule  16(2) and  regulation 12(2)\t and<br \/>\n13(1) by  empowering the  Director General  to\tspecify\t any<br \/>\nother  person  to  exercise  the  said\tpowers\tpermit\tsub-<br \/>\ndelegation by  the delegate  of the  powers delegated to him<br \/>\nwhich is  not permissible in view of the well know principle<br \/>\ndelegates non  potest  delegate.  The  Tribunal\t has  placed<br \/>\nreliance on  the decision of the Karnataka High Court in The<br \/>\nEmployees State\t Insurance corporation,\t Banglore  v.  Shoba<br \/>\nEngineers,  Bangalore  &amp;  Ors.\t1982  (1982  (44)  FLR\t100,<br \/>\nconstruing the provisions of Section 94-A of the Act.\n<\/p>\n<p>     At\t the   outset,\tit   may  be   stated  that  in\t the<br \/>\napplications  that   were  filed   by  the  respondents\t the<br \/>\nchallenge was  mainly to  the memoranda\t dated\tOctober\t 20,<br \/>\n1983, January  21,  1985  and  July  18\/25,  1986  regarding<br \/>\ninitiation  of\tdisciplinary  proceedings  by  the  Regional<br \/>\nDirector and  the order\t dated March  6, 1987  passed by the<br \/>\nDirector General  imposing the\tpenalty of reduction in rank<br \/>\non respondent,\tT.Abdul Razak. The order dated March 6, 1987<br \/>\nwas passed  by the  Director General  himself  who  was\t the<br \/>\ndisciplinary authority\tand it\tis not\topen to challenge on<br \/>\nthe ground of delegation  of powers by the Director General.<br \/>\nThe validity  of the  said order was challenged on the basis<br \/>\nthat the Regional Director was not competent to initiate the<br \/>\ndisciplinary proceedings  in which the order was passed. The<br \/>\nTribunal  was,\t therefore,  primarily\tconcerned  with\t the<br \/>\nvalidity of  three memoranda  referred\tto  above  regarding<br \/>\ninitiation  of\tdisciplinary  proceedings  by  the  Regional<br \/>\nDirector. In this context, it may be mentioned that no order<br \/>\nof the\tDirector General  delegating  his  powers  regarding<br \/>\ninitiation  of\tdisciplinary  proceedings  under  Regulation<br \/>\n13(1) had been placed before the Tribunal. The tow orders of<br \/>\nthe Director  General dated  may 10, 1974 and July 18, 1981,<br \/>\nwhich were under challenge, had been passed under Regulation<br \/>\n12(2) whereby  the Director  General had delegated the power<br \/>\nto impose minor penalties specified in clauses (1) to (i) of<br \/>\nRegulation 11  in respect of certain categories of employees<br \/>\nspecified  therein   on\t the   officers\t specified  therein.<br \/>\nTherefore. in  so far  as  the\tvalidity  of  the  memoranda<br \/>\nregarding initiation of disciplinary proceedings against the<br \/>\nrespondents is\tconcerned the  question regarding delegation<br \/>\nof  powers  by\tthe  Director  General\tdid  not  arise\t for<br \/>\nconsideration and the Tribunal was not required to deal with<br \/>\nthe question  regarding validity  of Rule 16(2), Regulations<br \/>\n12(2) and  13(1), the  resolution of  the Standing Committee<br \/>\ndated May  24, 1968  and the  orders of the Director General<br \/>\ndated May  10, 1974  and  April\t 9,  1981.  With  regard  to<br \/>\ninitiation  of\tdisciplinary  proceedings  by  the  Regional<br \/>\nDirector, we  find that\t the legal  position is well settled<br \/>\nthat it\t is not\t necessary that\t the authority\tcompetent to<br \/>\nimpose\tthe   penalty\tmust   initiate\t  the\tdisciplinary<br \/>\nproceedings and\t that the proceeding can be initiated by any<br \/>\nsuperior authority  who can  be held  to be  the controlling<br \/>\nauthority, [ See : <a href=\"\/doc\/303704\/\">State of Madhya Pradesh v. Shardul Singh,<\/a><br \/>\n1970 (1)  SCC 108;  <a href=\"\/doc\/1181668\/\">P.V. Srinivasa  Sastry v.  Comptroller &amp;<br \/>\nAuditor General,<\/a>  1993 (1) SCC 419; and <a href=\"\/doc\/319431\/\">Inspector General of<br \/>\nPolice &amp;  Anr. v.  Thavasiappan,<\/a> 1996  (2) SCC\t145  ].\t The<br \/>\nRegional Director,  being  the\tofficer\t in  charge  of\t the<br \/>\nregion, was  the controlling  authority in  respect  of\t the<br \/>\nrespondents, was the controlling authority in respect of the<br \/>\nrespondents. He could institute the disciplinary proceedings<br \/>\nagainst the  respondents even  in the  absence\tof  specific<br \/>\nconferment of  power in\t that regard.  The  memoranda  dated<br \/>\nOctober 20,  1983, January  21, 1985  and July\t18\/25,\t1986<br \/>\nregarding initiation  of disciplinary\tproceedings  against<br \/>\nthe respondents\t by the Regional Director, therefore, do not<br \/>\nsuffer from  any legal\tinfirmity and the applications filed<br \/>\nby the\trespondents before  the Tribunal has pronounced upon<br \/>\nthe validity of Rule 16(2), Regulations 12(2) and 13(1), the<br \/>\nresolution of  the standing Committee dated May 24, 1968 and<br \/>\norders dated  May 10,  1974 and\t April 9, 1981 passed by the<br \/>\nDirector  General   it\tbecomes\t necessary  to\texamine\t the<br \/>\ncorrectness of the decision of the Tribunal in that regard.\n<\/p>\n<p>     The law  is well  settled that  in accordance  with the<br \/>\nmaxim delegates\t non potest delegate, a statutory power must<br \/>\nbe exercised only by the body of officer in whom it has been<br \/>\nconfided, unless  sub-delegation of  the power is authorised<br \/>\nby  express   words  or\t  necessary  implication.  [  See  :<br \/>\nHalsbury&#8217;s Laws\t of England,  4th Edn. Vol. 1 para 32 p. 34;<br \/>\nCraies on  Statute Law, 7th Edn p. 316; the <a href=\"\/doc\/1748256\/\">Barium Chemicals<br \/>\nLtd. and  Anr. v.  The Company\tLaw Board  and Others,<\/a>\t1966<br \/>\nSupp. SCR  311, at  p. 330 and <a href=\"\/doc\/810883\/\">Sahni Silk Mills (P) Ltd. and<br \/>\nAnr. v. Employees&#8217; State Insurance Corporation,<\/a> 1994 (5) SCC<br \/>\n346, at pp. 350-351 ]<br \/>\n     In Sahni Silk Mills (P) Ltd. and Anr. v. The employees&#8217;<br \/>\nState Insurance\t Corporation (supra) this Court has approved<br \/>\nthe decision  of the  Karnataka High Court in the <a href=\"\/doc\/111159\/\">Employees&#8217;<br \/>\nState Insurance\t Corporation, Bangalore\t v. Shoba Engineers,<br \/>\nBangalore and Ors.<\/a> (supra). It has been held that Parliament<br \/>\nwhile introducing  Section 94-A\t in the\t Act only  Conceived<br \/>\ndirect delegation  by the  Corporation to different officers<br \/>\nor authorities\tsubordinate to\tthe Corporation and there is<br \/>\nno scope  for such  delegate to\t sub-delegate that power, by<br \/>\nauthorising any\t other officer\tto exercise  or perform\t the<br \/>\npowers so  delegated. The  Tribunal has,  therefore  rightly<br \/>\nheld that Section 94-A does not specifically provide that an<br \/>\nofficer or  authority subordinate to the Corporation to whom<br \/>\nthe power  the power  has been\tdelegated by the Corporation<br \/>\ncan, in\t his turn,  authorise any  other officer to exercise<br \/>\nthat power  of function.  But the  question that  arises  is<br \/>\nwhether Rule  16(2) of\tthe Rules  and Regulations 12(2) and<br \/>\n13(1) of  The Regulations  relate to  exercise of  powers or<br \/>\nfunctions of  the  Corporation\tor  the\t Standing  Committee<br \/>\ndelegated to  the Director General by the Corporation or the<br \/>\nStanding Committee  under Section  94-A of the Act. In order<br \/>\nto  answer  these  question,  it  is  necessary\t to  make  a<br \/>\ndistinction  between  a\t power\tconferred  on  the  Director<br \/>\nGeneral under  a rule  made in exercise of rule making power<br \/>\nunder Section  95 or  under a regulation made in exercise of<br \/>\npower to  make regulations  under  Sections  97(2)(xxi)\t and<br \/>\n17(2) of  the Act and a power or function of the Corporation<br \/>\nor the Standing Committee which is delegated to the Director<br \/>\nGeneral under  Section 94-A.  A rule or a regulation made in<br \/>\nexercise of  a power  conferred by  a statue  being  in\t the<br \/>\nnature of  subordinate legislation is statutory in character<br \/>\nwhile a\t resolution of a Corporation or a Standing Committee<br \/>\nis purely  administrative in  nature. Therefore,  the  power<br \/>\nconferred  on  the  Director  General  under  a\t rule  or  a<br \/>\nregulation is in the nature of statutory power that has been<br \/>\nconferred independently\t on the\t Director General. It cannot<br \/>\nbe regarded  as delegation  of powers  and functions  of the<br \/>\nCorporation or\tthe Standing Committee under Section 94-A of<br \/>\nthe Act.  Section 94-A speaks of &#8220;powers and functions which<br \/>\nmay be\texercised or  performed by  the Corporation  or\t the<br \/>\nStanding Committee&#8221;. The said powers and functions are other<br \/>\nthan the  powers that  are conferred  independently  on\t the<br \/>\nDirector General under the Rule or the Regulations.\n<\/p>\n<p>     On that  view of  the matter regulations 12 and 13 must<br \/>\nbe  construed\tas  conferring\tindependent  powers  on\t the<br \/>\nDirector General  and it cannot be said to be the powers and<br \/>\nfunctions of  the Corporation or the Standing Committee that<br \/>\nhave  been   delegated\tto   the  Director  General  by\t the<br \/>\nCorporation or\tthe Standing  Committee under  Section 94-A.<br \/>\nRegulation 12(2)  which\t  empowers the\tDirector General  to<br \/>\nspecify by  general of special order the authority which can<br \/>\nalso Act  as a\tdisciplinary authority and regulations 13(1)<br \/>\nwhich authorises  the Director General to empower by general<br \/>\nor  special   order  any   other  authority   to   institute<br \/>\ndisciplinary proceedings  against an  employee,\t  cannot  be<br \/>\nregarded as  empowering\t  further delegation by the Director<br \/>\nGeneral of  powers  delegated  to  him.\t The  Tribunal\twas,<br \/>\nTherefore, in error in striking down the words &#8220;or any other<br \/>\nauthority specified  in this  behalf by a general or special<br \/>\norder of  the Director\tGeneral&#8221; in Regulation 12(2) and the<br \/>\nwords &#8220;or any other authority empowered by him by general or<br \/>\nspecial order may&#8221; in Regulation 13(1) on the view that they<br \/>\npermit further\tdelegation by  the Director  General of\t the<br \/>\npowers delegated to him which is impermissible. The decision<br \/>\nof the\tTribunal in  this regard  cannot be  upheld and\t the<br \/>\noffending words\t in Regulations\t 12(2)\tand  13(1)  must  be<br \/>\ntreated as  a valid  conferment of  power  on  the  Director<br \/>\nGeneral to  delegate his  powers under\tside regulation. The<br \/>\norders dated  May 10,  1974 and April 9, 1981 were passed by<br \/>\nthe Director  General in Exercise of the powers conferred on<br \/>\nhim under  Regulation 12(2). By the said orders the Director<br \/>\nGeneral delegated  the\tpowers\tto  impose  minor  penalties<br \/>\nspecified in clauses (i) to (iv) of regulation 11 in respect<br \/>\nof  certain   categories  of   employees  and  the  officers<br \/>\nspecified in  the said\torders, Since  the offending part of<br \/>\nRegulation  12(2) has been found to be valid the said orders<br \/>\ndated May  10, 1974  and April\t9, 1981 must be held to have<br \/>\nbeen validly  issued in\t exercise of the power of delegation<br \/>\nconferred on the Director General under Regulation 12(2).\n<\/p>\n<p>     Rule 16(2) and the resolution of the Standing Committee<br \/>\ndated May  24,\t1968  go  together,  under  rule  16(2)\t the<br \/>\nDirector General  has been  empowered to delegate any of his<br \/>\npowers or  duties under the Rules or the Regulation or under<br \/>\nany resolution of the Corporation or the Standing Committee,<br \/>\nas the\tcase may  be, to  any person subordinate to him, For<br \/>\nthe purpose  of such  delegation it  is necessary  for\t the<br \/>\nDirector General  to obtain  the approval  of  the  Standing<br \/>\nCommittee.   Resolution of  the Standing Committee dated May<br \/>\n24, 1968  accords such approval to the Director General. The<br \/>\npower of delegation under Rule 16(2) can be divided into two<br \/>\nparts; one  relating to\t delegation of\tthe powers or duties<br \/>\nunder the  Rule 16(2)  can be  divided into  two parts;\t one<br \/>\nrelating to  delegation of  the powers\tor duties  under the<br \/>\nRules or the Regulation and other relating to the powers and<br \/>\nduties under  any  resolution  of  the\tCorporation  or\t the<br \/>\nStanding Committee.  Insofar as\t the powers  or duties under<br \/>\nthe Rules  or the  Regulations are concerned, the conferment<br \/>\non the\tDirector General  the power  to delegate the same is<br \/>\nnot  violative\t of  the   principle  of  sub-delegation  as<br \/>\nindicated earlier  because the said powers and duties are in<br \/>\nthe nature  of independent statutory powers conferred on the<br \/>\nDirector General  under the  Rules  or\tto  Regulations.  No<br \/>\ninfirmity can,\ttherefore, be  found either in Rule 16(2) or<br \/>\nin the\tresolution of  the Standing  Committee dated May 24,<br \/>\n1968 empowering\t the Director General to delegate any of his<br \/>\npowers or  duties under\t the Rules  or the  Regulations. The<br \/>\nposition is, However, different in respect of the and duties<br \/>\nconferred on  the Director  General under  any resolution of<br \/>\nthe Corporation or the Standing Committee. The conferment of<br \/>\nsuch powers  or duties under a resolution of the Corporation<br \/>\nor the\tStanding Committee  could be by way of delegation of<br \/>\nthe powers  of the  Corporation or  the\t Standing  Committee<br \/>\nunder Section  94-A of\tthe Act\t and empowering the Director<br \/>\nGeneral to  further delegate the said powers or duties would<br \/>\namount to  sub-delegation of  a power delegated to him which<br \/>\nis impermissible  in view  of the law laid down in Sahni Sil<br \/>\nMills (supra.  Rule 16(2) and the resolution of the Standing<br \/>\nCommittee dated May 24, 1968, to the extent they empower the<br \/>\ndirector General  to further  delegate the  powers or duties<br \/>\ndelegated  to\thim  by\t the  Corporation  or  the  Standing<br \/>\nCommittee under\t a resolution referable to Section 94-A have<br \/>\nto be held to be invalid.\n<\/p>\n<p>     For the  reasons aforementioned,  the impugned judgment<br \/>\nof the\tTribunal is set aside insofar as it strikes down the<br \/>\nwords &#8220;or  any other authority specified in this behalf by a<br \/>\ngeneral\t or  special  order  of\t the  Director\tGeneral&#8221;  in<br \/>\nRegulation 12(2)  and the  words  &#8220;or  any  other  authority<br \/>\nempowered by  him  by  general\tor  special  order  may&#8221;  in<br \/>\nRegulation 13(1)  of the  Regulations and quashes the orders<br \/>\ndated May  10, 1974 and April 9, 1981 passed by the Director<br \/>\nGeneral, the  memoranda dated  October 20, 1983, January 21,<br \/>\n1985 and  July 18\/25,  1986 and\t the order  dated March\t 18,<br \/>\n1987,  Rule   16(2)  and  the  resolution  of  the  Standing<br \/>\nCommittee, to  the extent  they empower the Director General<br \/>\nto delegate  the powers or duties delegated to him under any<br \/>\nresolution of  the Corporation\tor  the\t Standing  Committee<br \/>\nreferable   to Section 94-A, Are invalid but the rest of the<br \/>\nsaid Rule  and the  resolution are  valid. As  a result, the<br \/>\napplications filed  by the  respondents before\tthe Tribunal<br \/>\nare dismissed. The appeals are disposed of according. But in<br \/>\nthe circumstances there is no order as\tto costs.\n<\/p>\n<p>     SPECIAL LEAVE  PETITIONS (CIVIL)  NO. 13126-27  OF 1996<br \/>\n{C.C. NO. 368\/1996}<br \/>\n     Delay condoned.\n<\/p>\n<p>     The petitioner  had  Central  Administrative  Tribunal,<br \/>\nAhmedabad Bench\t for quashing  the Disciplinary\t proceedings<br \/>\ninitiated against him by the Regional Director and the order<br \/>\nof compulsory  retirement passed  in those  proceedings. The<br \/>\ncompetence  of\t the  Regional\t Director  to  initiate\t the<br \/>\nDisciplinary proceedings was challenged by the petitioner by<br \/>\nrelying on  the decision  of the  Tribunal in the case of T.<br \/>\nAbdul Razak. The Tribunal has negatived the said contention.<br \/>\nSince we have set aside the said decision of the Tribunal in<br \/>\nthe case  of T.\t Abdul Razak,  we  find\t no  merit  in\tthis<br \/>\npetition and the same is accordingly dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Director General, Est &amp; Anr vs T. Abdul Razak Etc on 8 July, 1996 Equivalent citations: 1996 SCC (4) 708, JT 1996 (6) 502 Author: S Agrawal Bench: Agrawal, S.C. (J) PETITIONER: DIRECTOR GENERAL, EST &amp; ANR. Vs. RESPONDENT: T. ABDUL RAZAK ETC. DATE OF JUDGMENT: 08\/07\/1996 BENCH: AGRAWAL, S.C. (J) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-49327","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Director General, Est &amp; Anr vs T. 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